Basic Cost Increase Adjustment Clause Samples
The Basic Cost Increase Adjustment clause allows for the modification of contract prices in response to increases in the costs of specified materials, labor, or other inputs. Typically, this clause outlines the conditions under which a price adjustment can be requested, such as when costs rise beyond a certain threshold, and may require documentation or proof of the increased expenses. Its core function is to protect parties from unforeseen cost escalations during the contract term, ensuring that the contract remains fair and viable even if market conditions change.
Basic Cost Increase Adjustment. The Base Rental payable hereunder shall be adjusted from time to time in accordance with the following provisions:
(a) The Building contains 324,668 square feet of Net Rentable Area in aggregate. Tenant's Base Rental is based, in part, upon the estimate that annual Basic Costs will be equal to $7.75 per square foot of Net Rentable Area in the Building (such estimate being hereinafter referred to as the "Expense Stop"). Tenant shall, when Landlord so requires during the term of this lease, pay as an adjustment to Base Rental hereunder, regardless of rental abatement, an amount (per each square foot of Net Rentable Area within the Premises, including those portions of Common Areas allocated to the Premises from time to time) equal to the excess ("Excess") from time to time of actual Basic Costs per square foot of Net Rentable Area in the Building over the amount of the Expense Stop. Landlord may collect such additional Base Rental in arrears. Landlord shall also have the option to make a good faith estimate of the Excess for each upcoming calendar year and may require the monthly payment of Base Rental adjusted in accordance with such estimate. Any amounts paid based on such an estimate shall be subject to adjustments pursuant to Paragraph 1(b) of this Exhibit "D" when actual Basic Costs are available for each calendar year.
(b) Tenant at its' expense shall have the right no more frequently than once per calendar year, following prior written notice to Landlord, to audit through an independent certified public accountant reasonably acceptable to Landlord, at Tenant's sole expense, Landlord's books and records relating to Basic Costs during the year preceding such audit. In the event such an audit demonstrates additional Base Rental collected for such preceding year to be higher or lower than the amount of additional rental paid pursuant to 1(a) above, then Landlord shall refund any overpayment or Tenant shall pay any deficiency within ten (10) days of such determination. ---------------------
(1) Notwithstanding the foregoing, the amount of any excess payable by Tenant relating to Basic Costs other than property taxes and assessments and utility costs shall not in any event increase by greater than six percent (6%) per year.
Basic Cost Increase Adjustment. The Base Rental payable hereunder shall be adjusted upward (but not downward) from time to time in accordance with the following provisions:
(a) The Building contains approximately 321,500 square feet of Net Rentable Area in aggregate. Tenant's Base Rental is based, in part, upon the estimate that during each calendar year of the Lease Term, Basic Costs will be equal to the actual Basic Costs for the calendar year 1993 (such estimate on a square foot of Net Rentable Area in the Building basis being hereafter referred to as the "Expense Stop"). Tenant shall, when Landlord so requires, during the Lease Term pay as an adjustment to Base Rental hereunder an amount (per each square foot of Net Rentable Area of the Premises, including those portions of Common Areas allocated to the Premises from time to time) equal to the excess ("Excess") from time to time of actual Basic Costs per square foot of Net Rentable Area in the Building over the amount of the Expense Stop. Landlord may collect such additional Base Rental in arrears on a yearly basis. Landlord shall also have the option to make a good faith estimate of the Excess for each upcoming calendar year and upon thirty (30) days' written notice to Tenant may adjust the monthly
Basic Cost Increase Adjustment. Intentionally omitted.
Basic Cost Increase Adjustment. Beginning October 1, 2010, Lessee’s Basic Costs referred to in Paragraph 6(a) of the Original Lease shall be equal to the 2010 actual costs instead of the 2008 actual costs and Lessee’s Net Rentable Area referred to in Paragraph 6(a) of the Original Lease shall be amended from 2,517 square feet to 6,769 square feet.